"We are in a dialogue with the Ministry of Finance to ensure that if new digital banks are established, they will be allowed to sell insurance products, so that competition in the insurance sector will increase," Supervisor of Banks Hedva Ber said today at a press conference held to announce the publication of Bank of Israel Banking Supervision Department's annual report. Ber is seeking to open the Israel insurance sector to competition, following yesterday's publication of the final conclusions by the Strum Committee on banking competition.
Ber presented the Strum Committee's report in great detail, noting that the dramatic easing of the capital requirements for new banks would be provided only after depositors' insurance is introduced on the lines agreed jointly with the Ministry of Finance.
Additional conditions for easing the capital requirements for new banks are the passage of legislation stipulating how the state will support banks in distress and bank failures and the creation of a credit database, which is expected to take at least three years.
Under the new rules published yesterday, a new bank will be required to present only NIS 50 million in equity, and a new Internet bank will have to provide NIS 400 million in capital.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016